California Gov. Gavin Newsom and former Gov. Arnold Schwarzenegger celebrated two decades of the state’s landmark climate law on Wednesday, Oct. 14, highlighting California’s efforts to reduce greenhouse gas emissions while growing its economy and expanding clean-energy investment.
The Democratic governor and Republican former governor appeared together at the 15th annual California Economic Summit in Long Beach to mark the 20th anniversary of Assembly Bill 32, the Global Warming Solutions Act, which Schwarzenegger signed in September 2006. The law established a framework for reducing California’s greenhouse gas emissions and helped lay the groundwork for the state’s cap-and-invest program.
“We’ve shown the world what a state can accomplish,” Schwarzenegger said, highlighting California’s climate leadership.
Newsom credited Schwarzenegger’s decision to sign AB 32 with helping create the state’s cap-and-invest program, which requires companies to reduce their emissions, purchase allowances, or fund projects that offset pollution. Revenue from the program supports climate initiatives, affordable housing and transportation projects, as well as electricity bill credits for residents.
Newsom said California has reinvested $16 billion to offset residents’ electricity costs since the program began and expects to receive another $8 billion over the next four years.
He also argued that predictable climate policies encourage businesses to invest in California’s clean-energy economy, pointing to Tesla as an example of the opportunities the state’s regulatory framework created.
“There’s no Elon Musk without what Gov. Schwarzenegger did because there would be no Tesla,” Newsom said.
Schwarzenegger agreed that long-term policy certainty helps attract investment, arguing that California’s climate initiatives demonstrate that environmental protections and economic development can advance together.
The state extended its cap-and-invest program through 2045 last year, giving businesses a longer-term framework for planning investments and meeting emissions requirements.
However, California’s approach continues to face criticism over energy affordability and regulatory costs. Wayne Winegarden, a senior fellow at the Pacific Research Institute, argued that assessments of the state’s climate policies should better account for the high energy costs Californians face. Critics have also questioned how much of the state’s economic growth can be directly attributed to its environmental regulations.
The governors’ joint appearance underscored their shared support for climate action despite their political differences. Schwarzenegger has criticized Newsom’s support for Proposition 50, the 2025 redistricting measure that temporarily allowed California lawmakers to redraw congressional districts.
The anniversary comes as California continues to pursue emissions reductions and clean-energy investment while facing questions about the cost of its climate policies for households and businesses.
